Lehman Brothers Holdings Inc., the famous investment banking giant which filed for bankruptcy in 2008, is reportedly selling the NYLO New York City hotel building in a bid to wind down its property portfolio.
According to Bloomberg, which broke news of the building going up for sale this week, the non-operational company invested about $20 million in renovations on the building and now wants to sell it off as part of revival strategy.
The 291-room hotel building is located at 2178 Broadway and offers loft-style living to its customers. A parcel at Broadway and 77th Street is also being offered for sale apart from the NYLO hotel.
Not much information about the deal is out yet as NYLO is being sold privately.
Lehman Brothers filed for Chapter 11 Bankruptcy in 2008 after the housing market crash which led to the economic meltdown. The company held about $600 billion worth of assets and the filing stands as the largest U.S. bankruptcy protection appeal until today.
Since its bankruptcy filing, Lehman Brothers didn't just stop operating in the real estate market; instead, it has been managing a pool of assets and it still owns about $3 billion in commercial real estate, $2.2 billion in private equity and $1 billion in derivative assets.
Lehman Brothers has taken a more pragmatic approach towards shedding its property portfolio, selling only if a good deal comes around, according to The Wall Street Journal.
Bloomberg reports that Lehman Brothers expects to recover $2 billion from its real estate holdings between April 2014 and December 2015.
Meanwhile, Lehman Brothers is still fighting off bust-era lawsuits. In a recent court hearing, the company's lawyers claimed that JP Morgan & Co., forced the company to hand over the almost all of its liquidity to "create an $8.6 billion slush fund," The Wall Street Journal reports.
